To: BigDaddyMac who wrote (1852 ) 7/29/1998 3:12:00 PM From: ColleenB Read Replies (2) | Respond to
EDII is growing through acquisition. The more market cap they have the more they can acquire. Their CEO is successful and has a heavy stake in the outcome, Danny Dror personally owns 25% of the company's stock. It is believed by most that they have undervalued assets as well. This is evidenced in the number of acquisitions they've made to date..for example one of their last acquisitions was a real estate company in Houston...they acquired 100% of MidTowne Properties, Inc. (''MPI''), a Texas corporation, incorporated in 1994. MPI has a net book value of $2,500,000 and will be merged into Texas Real Estate Enterprises, Inc. (''TREE''), a wholly owned subsidiary of EDII. EDII issued 1,100,000 restricted shares of common stock for 100% of all shares outstanding of MPI. The EDII shares exchanged were based on a value of $2.40 per share. BDO Seidman to help in assessing their true assets. It has been reported that the assets have been undervalued by as much as 50%. For example, the property they own is on the books for their original purchase price.....18 years ago. I'm sure we can safely say that property in Houston has significantly increased in value over an 18 year period. And let's not forget the property that is 20-30 yards away from one of the biggest oil finds in over a decade. That piece of property alone has been estimated to be worth $10 Million dollars. Again, not reflected in their financials.
